How new defence deals will bolster the UK economy

Boeing HQ: Since establishing a UK base, Boeing has grown its headcount significantly

22 March 2018 • 4:00pm

The UK’s engineering capability is helping to clinch major contracts, creating high-skill jobs and wealth down the supply chain

If you run the numbers on the UK defence industry, the facts are staggering: hundreds of thousands employed in the sector, tens of billions of pounds in gross value added (GVA) and a long list of satisfied customers around the world.

But this is a part of the UK economy known for its dynamism and innovation; its focus is always on becoming not just bigger but better – and there is enormous demand for recruits at every level, from factory production workers to data scientists.

Since 2007, when Boeing established a UK base to develop a dedicated European hub, it has grown its headcount from 33 to 2,300.

According to David Pitchforth, vice president and general manager, Boeing Defense, Space & Security Global Operations and managing director, Boeing Defence UK, his area of the business alone employs 1,300 people.

Success story: Boeing has worked closely with the UK’s Ministry of Defence

Part of this success story comes from Boeing’s close work with the UK’s Ministry of Defence, typified by a recent agreement to build a £100m facility at RAF Lossiemouth in Scotland.

The base will be the centre for maintenance and training for the RAF’s new Boeing-manufactured P-8A maritime patrol aircraft. Alone, it will create 100 jobs, according to Mr Pitchforth.

The ripple effect

“This is part of a framework for a longterm relationship between Boeing and the Ministry of Defence,” says Mr Pitchforth. “For us, it’s about being there – catering for client needs throughout the life of the products.

“With new deals comes a ripple effect down the supply chain, which leads to job creation and prosperity for communities.

“We’re working closely with our suppliers all over the UK to build a superior service for our customers. The UK is an extremely important country for Boeing and we will continue to invest. We’re in it for the long haul.”

One company benefiting from Boeing’s UK focus is Marshall Aerospace and Defence Group, which designs and manufactures the auxiliary fuel-tank system used in the P-8A programme.

Like Boeing, Marshall’s success has filtered down the supply chain, contributing £150m in GVA and supporting jobs

It has supplied more than 500 tank sets and received a Boeing Supplier of the Year award and two Boeing Performance Excellence awards in the past five years.

According to Alistair McPhee, Marshall’s chief executive, contracts such as this one have built the company over many years into a leading UK engineering business, with more than 1,700 employees and an extensive apprenticeship scheme.

Like Boeing, Marshall’s success has filtered down the supply chain, contributing £150m in GVA and supporting 2,600 jobs in the wider economy.

To reinforce this, the company has created a pioneering programme to inspire youngsters from the age of eight to become more involved in technology.

A high-skill future

“The defence industry generates many tens of billions of revenue every year and supports hundreds of thousands of direct and indirect jobs in the UK, which supports families and wider communities,” says Mr McPhee.

“The jobs, skills, exports and growth that are supported are vital for the UK’s future as a hi-tech, high-skill, high-wage economy.

“We have recently invested more than £50m in our business and people to ensure we are more agile and flexible to become a stronger competitor in the UK and overseas.

“As a business, we have a proven pedigree of supporting the UK Armed Forces for more than 80 years, also at the most challenging of times, and our depth and breadth of full-spectrum engineering capability gives the UK a sovereign industrial capability.”

The company has also been working with Boeing for more than five decades. Mr Pitchforth adds: “Our armed forces are the envy of other nations, so we are proud to be on this mission with them. As a business we are absolutely geared to deliver.”

To learn more about how Boeing is investing in British industry, visit Boeing and the UK